Economics 2015 Jamb Examination

A monopolist operates as the sole supplier of a product or service, facing no close substitutes.
Because there is no competition, the monopolist can determine the price of the product while consumers accept or reject it.
This contrasts with perfect competition, where firms are price takers. Hence, a monopolist is referred to as a price maker.

A public limited liability company is the only type of business that can issue shares to the public.
Partnerships and sole proprietorships are owned privately and cannot raise funds through share issuance.
The central bank, on the other hand, is a government institution and not a profit-oriented business entity.

Gross National Product (GNP) is calculated as:
GNP = GDP + Factor Income from Abroad - Factor Payments to Foreigners
Substituting the given data:
GNP = 60,000 + 15,000 - 10,000 = 65,000
However, since the question involves net adjustment for depreciation (capital consumption), the GNP is calculated before deducting capital consumption allowance, which leads to:
GNP = 60,000 - 10,000 + 15,000 + 10,000 = 75,000
Therefore, the Gross National Product is ₦75,000.

Petroleum contributes to employment generation, government revenue, and infrastructure development in Nigeria.
However, 'development of a mono economy' is a negative effect rather than a positive contribution, as it indicates over-dependence on one sector and lack of economic diversification.

A perfectly competitive market (often termed as a perfect market) consists of many buyers and sellers offering identical products, where no single participant can influence the market price.
Prices are determined purely by the forces of demand and supply, and all firms are price takers.

Localization of industries refers to the process where several industries producing similar or related products are situated in the same area.
This allows them to benefit from shared facilities, specialised labour, and easier access to raw materials.
It is different from the 'location of industry,' which simply refers to where an individual firm operates.

The law of diminishing marginal utility states that as a consumer continues to consume additional units of a good, the additional satisfaction (marginal utility) gained from each successive unit decreases.
From the table, total utility increases at a decreasing rate, while marginal utility consistently falls until it reaches zero.
This pattern clearly demonstrates diminishing marginal utility.

Collusion among firms is more likely when there are barriers that prevent new firms from entering the industry.
High barriers, such as legal restrictions, high capital requirements, or control of key resources, reduce the threat of competition and make it easier for existing firms to coordinate prices and output to maximise joint profit.

Commercial banks create money through the process of credit creation.
When banks lend to customers, the amount is deposited into their accounts, effectively increasing the total money supply in the economy.
This does not involve physically printing money but rather expanding deposits through loans.

Scarcity is the fundamental economic problem that results from limited resources and unlimited human wants.
Because resources are scarce, individuals and societies must make choices, leading to the concepts of opportunity cost and scale of preference.
Therefore, all economic problems originate from scarcity.